Register

Blog

Component Flows of Logistics Value Chain - Key Challenges

We restrict the scope of discussions to the road transport industry only. Under this
scope, we may state that the objective of the logistics is to ensure the movement of
specified goods from origin to destination on time, in full and in the desired form.
This movement results in value creation. To maximize value creation, the chain needs
to be more efficient. The value generation process can be looked at as a result of
three flows (a)Flow of goods as per requirement - This refers to the actual
transportation task (b)Flow of Funds – This refers to the flow of money in the
chain; in most cases it would be in the direction opposite to the flow of funds (c)
Flow of information – This is extremely valuable in the entire ecosystem.
These three flows jointly generate value for the value chain. Some of the areas
where there are major inefficiencies in the chain are as follows:
- Flow of goods:
- Delayed vehicle availability
- Inappropriate vehicle choice
- Inappropriate routing
- Long pick up haul
- Poor capacity utilization
- Empty returns
- Idle vehicles
- Non-availability of drivers
- Absence of performance metrics
-Flow of funds:
-Predominantly cash transactions
-Delayed payments
-Payment defaults
-Absence of performance metrics
-Flow of Information
-Absence of democratized market place
-Difficult to match demand and capacity due to information gaps leading to expensive
spot transactions
-Poor planning
-Absence of monitoring leading to en-route delays, detours
-Absence of tracking leads to waits and demurrages
-Lack of analytics leading to sub-optimal fleet utilization&inefficient logistics
planning
Each of these challenges present a huge opportunity for value engineering and
thereby improve the entire value chain.
Keep watching this space to know more about how Logisto aims to innovate & transform
the value chain through its novel approaches.

The vehicle images and basic specifications have been taken from the public do main such
as
manufacturers websites/other portals While reasonable care has been taken to ensure
their
correctness at the time the aforementioned content was created, Logisto or their
associates
and partners do not vouch for their authenticity or accuracy. Further manufacturer's may
change their vehicle specifications from time to time and the same may not get reflected
here immediately.The sole purpose of including this information here is to provide an
aid to
the customer to assess which vehicle would meet their requirements and not to provide
any
comparative information among various vehicles. Logisto is a commercial vehicle
aggregator
and does not own any vehicle and nothing mentioned anywhere on Logistos website or any
other
Logisto content should be construed as an assessment or comparison of vehicles. For more
authentic information pertaining to vehicle specifications, customers are advised to
check
manufacturers website.Where a discrepancy in the aforementioned information is brought
to
Logistos notice by a source of repute, Logisto would be happy to consider making
appropriate
changes to the same.